Spirit and Frontier appeal the preliminary rejection of the DCA slot

Spirit Airlines (NK, Fort Lauderdale International) and Frontier Airlines (F9, Denver International) are appealing the U.S. Department of Transportation's (DOT) preliminary denial of their application for slot pairs at Washington National and preliminary approval of Alaska Airlines' application instead.

In June, the DOT issued a Notice of Slot Waiver Process for Washington National (DCA), inviting applications for ten slots (five slot pairs) for daily flights. Four slot pairs are dedicated to non-limited incumbent carriers and one slot pair is allocated to a limited incumbent carrier.

Spirit had sought two slots for daily nonstop service to San Jose, USA, while Frontier was seeking a pair of slots for daily service to San Juan Luis Muñoz Marin in Puerto Rico.

However, in October, the DOT determined that Spirit did not meet the requirement to be a “limited incumbent carrier” because it did not serve Washington National as of May 16, 2024 (and still does not), while Frontier does not meet the definition fulfilled of a newcomer. Instead, the DOT tentatively granted slot exceptions to Alaska Airlines, American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.

Spirit and Frontier have asked the DOT to reverse its decision. In separate regulatory filings, Spirit argues that the DOT's decision conflicts with the FAA Reauthorization Act of 2024, Section 502, which requires the allocation of 10 exception slots to enhance nonstop travel options to out-perimeter airports that do not have service from DCA and to stimulate competition in the market. This followed President Joe Biden's 2021 executive order to promote competition in the U.S. economy and directed Transportation Secretary Pete Buttigieg to improve flight options and services for consumers.

In its objection, Spirit argues that Section 502 primarily benefits legacy airlines. It claims the legislation effectively guarantees that American, Delta and Southwest will each get two slots. Together with United and Alaska, these airlines control about 77% of the domestic market and operate 90% of the slots at DCA.

According to Spirit, on July 17, 2024, Senator Maria Cantwell, chairwoman of the Senate Commerce Committee, outlined which cities should receive services in a letter to the DOT, naming San Antonio International (American), Seattle Tacoma International (Delta), Las Vegas Harry Reid (Southwest) and San Diego International for Alaska Airlines. Following its recent merger with Hawaiian Airlines (HA, Honolulu), Alaska has become the fifth-largest domestic airline with a market share of nearly 8%, Spirit noted in its statement. Spirit argues that the DOT had two options:

• Recognize Alaska as an unlimited incumbent and grant the San Jose route to Spirit as a limited incumbent; or
• Designate Alaska Airlines as a limited incumbent and assign the remaining non-limited incumbent slots to JetBlue Airways (B6, New York JFK) for Puerto Rico or United Airlines for San Francisco.

Surprisingly, however, the DOT allocated slots to United Airlines, “ensuring that low-cost airlines were excluded.”

Meanwhile, Frontier argues that the DOT exceeded its authority by exempting Alaska Airlines from a nonexistent statutory exclusion. She contends that her disqualification is based on incorrect legal interpretation and contradicts the DOT's previous determinations regarding Frontier's status. It also claims that an existing codeshare partnership between American and Alaska already gives the Alaskan carrier “significant access to the DCA market” and that its total number of slots at DCA “far exceeds the 20 limit.”

In a separate letter to Buttigieg, San Jose Mineta International Airport and the Silicon Valley region also objected to the DOT's interim decision against Spirit Airlines.